Required:$1.$ Determine the plantwide overhead rate using $183,000$ direct labor hours as the allocation base.$2.$ Determine the overhead cost per unit for the desk lamp using the plantwide overhead rate.$3.$ Compute departmental overhead rates based on machine hours in the Fabricating department and direct labor hours in the Assembly department.$4.$ Determine the overhead cost per unit for the desk lamp using the departmental overhead rates.

 

Laval produces lighting fixtures. Budgeted information for its two production departments follows. The departments use machine hours (MH) and direct labor hours (DLH). Overhead cost Direct labor hours Machine hours Fabricating $ 510,000 141,000 DLH 85,000 MH Assembly $ 588,000 42,000 DLH 79,500 MH Laval reports the following for one of its products, a desk lamp. Fabricating Department Assembly Department Desk lamp Number of Units 5,000 Direct Labor Hours Machine Hours per Direct Labor Hours per Unit Unit per Unit 4 DLH per unit 4 MH per unit 2 DLH per unit Machine Hours per Unit 0.6 MH per unit Required: 1. Determine the plantwide overhead rate using 183,000 direct labor hours as the allocation base. 2. Determine the overhead cost per unit for the desk lamp using the plantwide overhead rate. 3. Compute departmental overhead rates based on machine hours in the Fabricating department and direct labor hours in the Assembly department. 4. Determine the overhead cost per unit for the desk lamp using the departmental overhead rates. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 1 Required 2 Required 3 Required 4 Compute departmental overhead rates based on machine hours in the Fabricating department and direct labor hours in the Assembly department. What is the departmental overhead rate for the Fabricating Department? Determine the plantwide overhead rate using 183,000 direct labor hours as the allocation base. = What is the departmental overhead rate for the Assembly Department? Required 1 Required 2 Required 3 Required 4 Determine the overhead cost per unit for the desk lamp using the plantwide overhead rate. Desk lamp Plantwide Overhead Rate Hours Used Required 1 Required 2 Required 3 Required 4 Determine the overhead cost per unit for the desk lamp using the departmental overhead rates. Department Overhead Cost per Unit Fabricating Assembly Total Departmental Overhead Rate Hours per Unit Overhead Cost per Unit